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Equity markets are gaining ground this morning thanks to Chinese inflation data (deflation data actually) which surprised to the upside for Producer Prices while Consumer Price growth held firm. This update has gone some way to offset the market fears that dragged markets lower yesterday after soft Chinese Trade data over the weekend revived concerns about the nation’s transition/growth/slowdown. Despite the USD holding up around highs, raw materials are getting some respite from recent losses as a little risk appetite returns, helping the UK Index outperform peers slightly. Oil off its Saudi minister/Canadian wildfire panic lows which is also helping with the revival of more bullish sentiment.
The UK 100 recovery has paused at 6180 but could break higher via a 2-day bullish inverse head & shoulders. The DAX30 bounce is now testing the 200-day MA at 10100 with Feb’s rising channel having resumed. Wall Street/Dow Jones futures have broken above 17800 and could go on test 17900 amid a reversal from 1-month lows. Gold declines halted at $1260 thanks to historical resistance having turned support.
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The UK 100 has found some resistance at 6180 but could yet break higher thanks to a 2-day bullish inverse head & shoulders pattern. This could allow it test 6200 and the trendline of falling highs resistance since mid-April. Bears remain focused on a 3-week falling channel.
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Possible support
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Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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The DAX bounce has seen it resume February’s uptrend within a rising channel. This correlates with the RSI bouncing off 8-month rising lows and with USD strength pushing the EUR lower, to the benefit of Germanic exporters.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Dow Jones futures have broken above 17800 and could go on test 17900 amid a continued reversal from 1-month lows. Rising lows from Friday will assuage the Bulls while the bears focus on minor resistance amid each step higher.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
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Gold found support at $1060 thanks to March and April resistance having turned support which could keep the 2016 uptrend alive to engineer another test of $1300. Although traders must keep a watch on the USD (weaker USD helps commodities) as well as the relationship between risk appetite and demand for safehavens.
Solid Green line
Possible support
Solid Red line
Possible resistance
Important: The information provided above does not constitute advice or opinion and must only be regarded as technical observations.
Click here for help with Support & Resistance Click here for help with technicals
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